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Tom Kirkman

Gazprom fails to exempt Nord Stream-2 from EU market rules

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Article is behind a paywall, only the first bit is viewable.  Interesting news though.

Gazprom fails to exempt Nord Stream-2 from EU market rules

The Germany regulator has turned down Gazprom’s application to exempt the Nord Stream-2 gas pipeline (55 Bcm per year) from common EU market rules that stipulate the unbundling of gas producer and supplier. Under EU rules, Nord Stream-2 would also need to open up to third party suppliers.  ...

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10 hours ago, Tom Kirkman said:

Article is behind a paywall, only the first bit is viewable.  Interesting news though.

Gazprom fails to exempt Nord Stream-2 from EU market rules

The Germany regulator has turned down Gazprom’s application to exempt the Nord Stream-2 gas pipeline (55 Bcm per year) from common EU market rules that stipulate the unbundling of gas producer and supplier. Under EU rules, Nord Stream-2 would also need to open up to third party suppliers.  ...

The pipeline originates in Russia. There are other suppliers than Gazprom?

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12 hours ago, Jay McKinsey said:

The pipeline originates in Russia. There are other suppliers than Gazprom?

There is Rosneft and Novatek. 

Will be interesting to see whether they access the pipeline.

 

1. Maybe the Apparatchiks organise a behind the scenes face saving / diplomacy exercise and agree controlled access

or

2. the Apparatchiks, behind closed doors  give the independent suppliers the option of having their kidneys beaten with rubber truncheons or alternatively politely decline any use of the pipeline.

 

1 would make more sense but these be Russians with Russian ways......

 

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(edited)

Let me tell you how the Nord Stream II case ends 
First, the gas pipeline will be built sooner or later. In the era of Covid-19, high gas stocks and a transit agreement with Ukraine Gazprom is not particularly under pressure of deadlines 
Secondly, the Americans will reconcile with Nord Stream II. They will collect a premium for the hegemon in the form of, say, 30-40 billion cubic meters of gas imported to Europe, including through Germany that will build gas ports and will draw large amounts of gas in connection with climate policy from several sources It will be the right policy that reconciles Russia and the US 

Thirdly unfortunately, Germany is for the US the most important partner in Europe much more important than the countries of Central and Eastern Europe and US cant simply destroy its vital interests so need to make  agreement  sooner or later.

4 Reagan was already imposing sanctions on Soviet gas, and even he in the 1980s he was defeated in this field. Its simbolic that even Margaret Thatcher was against such sanctions
5 From Yamal's sources, 50 billion m3 of gas in a few years will flow via a new gas pipeline to China via Mongolia, therefore Europe and China will compete for Russian gas in a few years after hegemonic appeasement, 
6 Germany as the EU leader will make sure NS2 flows 60 billion m3 of gas silently as above lifting restrictions. Do you remember the never ending story about the NS1 capacity reduction? Last year at a nominal power of 55 billion m3, it flowed to 58.5 billion m3, i.e. it was used for 107% of the capacity.
7 Poland Ukraine Belarus and the Baltic States will protest loudly but that what counts is real strength everyone will have these protests  in the ass 
8 I bet that as part of the great former Soviet family and Trump finally leaving Ukraine which is de facto failed state Russia and Ukraine will  come to terms so gas will stop flowing through the Yamal pipeline and will continue to flow through Ukraine and that will be some kind of punishment for Poland.

9  But Poland has LNG from America and the Baltic Pipe, its own gas and coal, so it will also be safe, it will only pay a little more for gas. I de facto understand the threat from Russia, but in terms of energy Poland  for many years because of having gas deposits and huge amounts of coal apart from Romania is probably the safest country in the region.

10 Gas prices in the next few years should stabilize in Europe at the level of $ 8 per mbbtu, or almost $ 300 for 1,000 m3, at least according to the Oxford Institute for Energy Studies, the most authoritative thinktank in the oil and gas industry.

11 The April oil agreement saves  Russia but even more the US oil and gas sector, which is how it happens  the Republican and Trump  core electorate.  What was additionally established because it was a very powerful deal of XXI century negotiated in the number of top-level talks, we'll find out in a while. Trump once more proved himself to be a great deaI maker but US position was not so strong so I think there were some concessions for a big cut. I myself bet the Americans are quietly giving up on the subject of Nord Stream II and will no longer  try to block it in every possible way

12 America is a very powerful power but in this field in April 2020 position of the United States was definitely not strong because it was threatened by a powerful collapse of the shale sector in the presidential election year.

Quote

 

Regulator exempted Nord Stream from EU Gas Directive in Germany for 20 years

MOSCOW, May 20 - PRIME. The German Federal Network Agency (BNA) has exempted Nord Stream from the rules of the EU Gas Directive in Germany for 20 years, said Nord Stream AG pipeline operator.

“On May 20, 2020, the Federal Grid Agency granted the Nord Stream gas pipeline an exception to the main provisions of the EU Gas Directive,” the release said.

The exception applies to the gas pipeline section located in Germany (including the territorial waters of the country), and is valid for 20 years from the date of entry into force of the modified German energy law directive, that is, from December 12, 2019, is specified there.

As Artem Deev, head of the analytical department of Amarkets brokerage company, noted, the regulator’s decision actually means that now Nord Stream will be able to operate at full capacity for 20 years. “In fact, the pipeline has been operating in this full mode since 2017, when the load was 93%, and in subsequent years more than 100%. That is, the regulator’s decision is a legal confirmation that the project is operating at full capacity and this situation will continue for the next 20 years, "he told RIA Novosti.

At the end of last year, the German Bundestag adopted an amendment to the energy law in accordance with the EU Gas Directive. According to German law, the Federal Network Agency had to decide whether the directive applied to Nord Stream. The updated directive requires that the gas pipeline entering the territory of the European Union either be partially filled by an alternative supplier, or the gas pipeline in the part lying on the territory of the union belongs to a third company.

The Nord Stream export gas pipeline from Russia to Europe was launched in 2011. In 2019, Gazprom exported 58.5 billion cubic meters of gas through Nord Stream.

 

 

Edited by Tomasz

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There is no shortage of pipelines in the EU, or storage. Or gas

How it end is that Gazprom have a very expensive pipe.

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